According to the quantity theory of money, a 4% increase in money supply...

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nominal GDP would rise by 7 percent; real GDP would be unchanged

According to the assumption of the quantity theory of money, if the money supply increases by 7% then

Click Card to flip

increases in money-supply growth

The source of hyperinflations is primarily

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the waste of resources used to maintain lower money holdings

The shoeleather cost of inflation refers to

Click Card to flip

Menu Costs

The costs of changing price listings are known as

Click Card to flip

after-tax real interest rates

When deciding how much to save, people care mostly about

Click Card to flip

a US import and a French export

When Claudia, an US citizen, purchases a handbag made in France, the purchase is

Click Card to flip

a trade surplus and positive net exports

A country sells more to foreign countries than it buys from them. It has

Click Card to flip

exports rise, imports fall

Which of the following both raise net exports?

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exports of $ 2.5 billion and a trade deficit of $ 3.5 billion

A country purchases $6 billion of foreign-produced goods and services and sells $ 2.5 billion
of domestically produced goods and services to foreign countries. It has

Click Card to flip

nominal exchange rate

rate at which a country can trade the currency of one country for another

Click Card to flip

exchange rates in the long run

Purchasing power parity describes the forces that determine

Click Card to flip

real exchange rate is equal to 1

If purchasing-power parity holds, then the value of the

Click Card to flip

domestic investment plus net capital outflow

In an open economy, national savings equals

Click Card to flip

$70bill

A country has national saving of $70 billion , government expenditures of $ 20 billion,
domestic investment of $30 billion and net capital outflow of $ 40 billion. What is its supply of
loanable funds?

Click Card to flip

domestic investment and net capital outflow both fall

Other things the same, as the interest rate rises

Click Card to flip

national saving

in an open economy, the equilibrium quantity of loanable funds equals

Click Card to flip

NCO

In an open economy, the supply in the foreign exchange market comes from

Click Card to flip

price of domestic currency relative to foreign currency

The exchange rate measures the

Click Card to flip

less expensive relative to foreign goods, which makes exports rise and imports fall.

When the real exchange rate for the dollar depreciates, US goods become

Click Card to flip

real exchange rate

In the open economy, the price that balances supply and demand in the foreign exchange market
is the

Click Card to flip

real interest rate

In the open economy, the key determinant of net capital outflow is the

Click Card to flip

that directly influences the quantity of goods that a country imports and exports

A trade policy is a government policy

Click Card to flip

Short run fluctuations in the eco.

The aggregate demand and aggregate supply model to analyze

Click Card to flip

real GDP

used to monitor short-run changes in economic activity

Click Card to flip

recession

A relatively mild period of falling incomes and rising unemployment is called a

Click Card to flip

the CPI or the GDP deflator

The average price level is measured by

Click Card to flip

Consumption, Investment, NX

3 things that are included in the aggregate demand for goods and services

the supply of labor, available natural resources , available technology

3 determinants of the long-run level of real GDP?

Click Card to flip

technology improves

The long run aggregate supply curve shifts right if

Click Card to flip

both the price level and the real GDP rise

short term effects of consumer optimism on the price level and real GDP

Click Card to flip

the price level rises and the real GDP stays the same

long term effects of consumer optimism on the price level and real GDP

Click Card to flip

Financial System

-involves bank accounts, mortgages, stock prices, and many other items.
-involves decisions and actions undertaken by people at a point in time that affect their lives in the future.
-coordinates the economy’s saving and investment.

Click Card to flip

$1,000/(1.06)

Which of the following is the correct expression for finding the present value of a $1,000
payment one year from today if the interest rate is 6 percent?

Click Card to flip

$100(1 + .04)^10

the correct way to compute the future value of $100 put into an account that earns 4 percent interest for 10 years

Click Card to flip

$2,591.85

If the interest rate is 7.5 percent, then what is the present value of $4,000 to be received
in 6 years?

Click Card to flip

$441.87

Suppose you put $350 into a bank account today. Interest is paid annually and the
annual interest rate is 6 percent. The future value of the $350 after 4 years is

Click Card to flip

6%

At which interest rate is the present value of $79.50 one year from today equal to $75
today?

Click Card to flip

$9,090.91

You have a bond that entitles you to a one-time payment of $10,000 one year from
now. The interest rate is 10 percent per year. How much is the bond worth today?

Click Card to flip

the present value of the returns from the factory will fall, so U.S. Phones
will be less likely to build the factory.

U.S. Phones is considering buying new equipment to build a factory. If the interest rate
rises,

Click Card to flip

70/r years.

If the interest rate is r percent, then the rule of 70 says that your savings will double
about every

Click Card to flip

bond

certificate of indebtedness.

Click Card to flip

dividends

Profits paid out to stockholders

Click Card to flip

public saving

In a closed economy, what does (T - G) represent?

Click Card to flip

private saving

In a closed economy, what does (Y - T - C) represent?

Click Card to flip

1500 and -500

Suppose that in a closed economy GDP is equal to 11,000, Taxes are equal to 2,500,
Consumption equals 7,000, and Government purchases equal 3,000. What are private
saving and public saving?

Click Card to flip

nominal interest rate

interest rate as usually reported by banks.

Click Card to flip

budget surplus

reduces the interest rate and raises investment

Click Card to flip

their labor earnings.

To maintain their standard of living, most people rely on

Click Card to flip

cyclical unemployment

The deviation of unemployment from its natural rate is called

Click Card to flip

does not go away on its own even in the long run.

The designation "natural" implies that the natural rate of unemployment

Click Card to flip

number of people employed plus the number of people unemployed.

The labor force equals the

Click Card to flip

the labor force that is unemployed.

The Bureau of Labor Statistics defines the unemployment rate as the percentage of

Click Card to flip

total adult population that is in the labor force.

The labor-force participation rate measures the percentage of the

Click Card to flip

You list prices for goods in dollars.

best illustrates the unit of account function of money

Click Card to flip

he amount of reserves banks must hold against deposits

Reserve requirements are regulations concerning

Click Card to flip

You pay for your double latte using currency.

best illustrates the medium of exchange function of money

Click Card to flip

Commodity money

what kind of money is backed by gold

Click Card to flip

fiat money

money with no intrinsic value

Click Card to flip

conducting open market operations.

The Fed’s primary tool to change the money supply is

Click Card to flip

10%

Assets Liabilities
Reserves 15,000 Deposits 150,000
Loans 135,000

6. Refer to the table. If the bank has lent out all the money it can given its deposits, then
what is its reserve ratio?

According to the quantity theory of money, a 4% increase in money supply...

Generated by
Koofers.com

nominal GDP would rise by 7 percent; real GDP would be unchanged

According to the assumption of the quantity theory of money, if the money supply increases by 7% then

increases in money-supply growth

The source of hyperinflations is primarily

the waste of resources used to maintain lower money holdings

The shoeleather cost of inflation refers to

Menu Costs

The costs of changing price listings are known as

Generated by
Koofers.com

after-tax real interest rates

When deciding how much to save, people care mostly about

a US import and a French export

When Claudia, an US citizen, purchases a handbag made in France, the purchase is

a trade surplus and positive net exports

A country sells more to foreign countries than it buys from them. It has

exports rise, imports fall

Which of the following both raise net exports?

Generated by
Koofers.com

exports of $ 2.5 billion and a trade deficit of $ 3.5 billion

A country purchases $6 billion of foreign-produced goods and services and sells $ 2.5 billion
of domestically produced goods and services to foreign countries. It has

nominal exchange rate

rate at which a country can trade the currency of one country for another

exchange rates in the long run

Purchasing power parity describes the forces that determine

real exchange rate is equal to 1

If purchasing-power parity holds, then the value of the

Generated by
Koofers.com

domestic investment plus net capital outflow

In an open economy, national savings equals

$70bill

A country has national saving of $70 billion , government expenditures of $ 20 billion,
domestic investment of $30 billion and net capital outflow of $ 40 billion. What is its supply of
loanable funds?

domestic investment and net capital outflow both fall

Other things the same, as the interest rate rises

national saving

in an open economy, the equilibrium quantity of loanable funds equals

Generated by
Koofers.com

NCO

In an open economy, the supply in the foreign exchange market comes from

price of domestic currency relative to foreign currency

The exchange rate measures the

less expensive relative to foreign goods, which makes exports rise and imports fall.

When the real exchange rate for the dollar depreciates, US goods become

real exchange rate

In the open economy, the price that balances supply and demand in the foreign exchange market
is the

Generated by
Koofers.com

real interest rate

In the open economy, the key determinant of net capital outflow is the

that directly influences the quantity of goods that a country imports and exports

A trade policy is a government policy

Short run fluctuations in the eco.

The aggregate demand and aggregate supply model to analyze

real GDP

used to monitor short-run changes in economic activity

Generated by
Koofers.com

recession

A relatively mild period of falling incomes and rising unemployment is called a

the CPI or the GDP deflator

The average price level is measured by

Consumption, Investment, NX

3 things that are included in the aggregate demand for goods and services

the supply of labor, available natural resources , available technology

3 determinants of the long-run level of real GDP?

technology improves

The long run aggregate supply curve shifts right if

both the price level and the real GDP rise

short term effects of consumer optimism on the price level and real GDP

the price level rises and the real GDP stays the same

long term effects of consumer optimism on the price level and real GDP

Generated by
Koofers.com

Financial System

-involves bank accounts, mortgages, stock prices, and many other items.
-involves decisions and actions undertaken by people at a point in time that affect their lives in the future.
-coordinates the economy’s saving and investment.

$1,000/(1.06)

Which of the following is the correct expression for finding the present value of a $1,000
payment one year from today if the interest rate is 6 percent?

$100(1 + .04)^10

the correct way to compute the future value of $100 put into an account that earns 4 percent interest for 10 years

$2,591.85

If the interest rate is 7.5 percent, then what is the present value of $4,000 to be received
in 6 years?

Generated by
Koofers.com

$441.87

Suppose you put $350 into a bank account today. Interest is paid annually and the
annual interest rate is 6 percent. The future value of the $350 after 4 years is

6%

At which interest rate is the present value of $79.50 one year from today equal to $75
today?

$9,090.91

You have a bond that entitles you to a one-time payment of $10,000 one year from
now. The interest rate is 10 percent per year. How much is the bond worth today?

the present value of the returns from the factory will fall, so U.S. Phones
will be less likely to build the factory.

U.S. Phones is considering buying new equipment to build a factory. If the interest rate
rises,

Generated by
Koofers.com

70/r years.

If the interest rate is r percent, then the rule of 70 says that your savings will double
about every

bond

certificate of indebtedness.

dividends

Profits paid out to stockholders

public saving

In a closed economy, what does (T - G) represent?

Generated by
Koofers.com

private saving

In a closed economy, what does (Y - T - C) represent?

1500 and -500

Suppose that in a closed economy GDP is equal to 11,000, Taxes are equal to 2,500,
Consumption equals 7,000, and Government purchases equal 3,000. What are private
saving and public saving?

nominal interest rate

interest rate as usually reported by banks.

budget surplus

reduces the interest rate and raises investment

Generated by
Koofers.com

their labor earnings.

To maintain their standard of living, most people rely on

cyclical unemployment

The deviation of unemployment from its natural rate is called

does not go away on its own even in the long run.

The designation "natural" implies that the natural rate of unemployment

number of people employed plus the number of people unemployed.

The labor force equals the

Generated by
Koofers.com

the labor force that is unemployed.

The Bureau of Labor Statistics defines the unemployment rate as the percentage of

total adult population that is in the labor force.

The labor-force participation rate measures the percentage of the

You list prices for goods in dollars.

best illustrates the unit of account function of money

he amount of reserves banks must hold against deposits

Reserve requirements are regulations concerning

Generated by
Koofers.com

You pay for your double latte using currency.

best illustrates the medium of exchange function of money

Commodity money

what kind of money is backed by gold

fiat money

money with no intrinsic value

conducting open market operations.

The Fed’s primary tool to change the money supply is

Generated by
Koofers.com

10%

Assets Liabilities
Reserves 15,000 Deposits 150,000
Loans 135,000
6. Refer to the table. If the bank has lent out all the money it can given its deposits, then
what is its reserve ratio?

According to the quantity theory of money, a 4% increase in money supply...

nominal GDP would rise by 7 percent; real GDP would be unchanged

According to the assumption of the quantity theory of money, if the money supply increases by 7% then

increases in money-supply growth

The source of hyperinflations is primarily

the waste of resources used to maintain lower money holdings

The shoeleather cost of inflation refers to

Menu Costs

The costs of changing price listings are known as

after-tax real interest rates

When deciding how much to save, people care mostly about

a US import and a French export

When Claudia, an US citizen, purchases a handbag made in France, the purchase is

a trade surplus and positive net exports

A country sells more to foreign countries than it buys from them. It has

exports rise, imports fall

Which of the following both raise net exports?

exports of $ 2.5 billion and a trade deficit of $ 3.5 billion

A country purchases $6 billion of foreign-produced goods and services and sells $ 2.5 billion
of domestically produced goods and services to foreign countries. It has

nominal exchange rate

rate at which a country can trade the currency of one country for another

exchange rates in the long run

Purchasing power parity describes the forces that determine

real exchange rate is equal to 1

If purchasing-power parity holds, then the value of the

domestic investment plus net capital outflow

In an open economy, national savings equals

$70bill

A country has national saving of $70 billion , government expenditures of $ 20 billion,
domestic investment of $30 billion and net capital outflow of $ 40 billion. What is its supply of
loanable funds?

domestic investment and net capital outflow both fall

Other things the same, as the interest rate rises

national saving

in an open economy, the equilibrium quantity of loanable funds equals

NCO

In an open economy, the supply in the foreign exchange market comes from

price of domestic currency relative to foreign currency

The exchange rate measures the

less expensive relative to foreign goods, which makes exports rise and imports fall.

When the real exchange rate for the dollar depreciates, US goods become

real exchange rate

In the open economy, the price that balances supply and demand in the foreign exchange market
is the

real interest rate

In the open economy, the key determinant of net capital outflow is the

that directly influences the quantity of goods that a country imports and exports

A trade policy is a government policy

Short run fluctuations in the eco.

The aggregate demand and aggregate supply model to analyze

real GDP

used to monitor short-run changes in economic activity

recession

A relatively mild period of falling incomes and rising unemployment is called a

the CPI or the GDP deflator

The average price level is measured by

Consumption, Investment, NX

3 things that are included in the aggregate demand for goods and services

the supply of labor, available natural resources , available technology

3 determinants of the long-run level of real GDP?

technology improves

The long run aggregate supply curve shifts right if

both the price level and the real GDP rise

short term effects of consumer optimism on the price level and real GDP

the price level rises and the real GDP stays the same

long term effects of consumer optimism on the price level and real GDP

Financial System

-involves bank accounts, mortgages, stock prices, and many other items.
-involves decisions and actions undertaken by people at a point in time that affect their lives in the future.
-coordinates the economy’s saving and investment.

$1,000/(1.06)

Which of the following is the correct expression for finding the present value of a $1,000
payment one year from today if the interest rate is 6 percent?

$100(1 + .04)^10

the correct way to compute the future value of $100 put into an account that earns 4 percent interest for 10 years

$2,591.85

If the interest rate is 7.5 percent, then what is the present value of $4,000 to be received
in 6 years?

$441.87

Suppose you put $350 into a bank account today. Interest is paid annually and the
annual interest rate is 6 percent. The future value of the $350 after 4 years is

6%

At which interest rate is the present value of $79.50 one year from today equal to $75
today?

$9,090.91

You have a bond that entitles you to a one-time payment of $10,000 one year from
now. The interest rate is 10 percent per year. How much is the bond worth today?

the present value of the returns from the factory will fall, so U.S. Phones
will be less likely to build the factory.

U.S. Phones is considering buying new equipment to build a factory. If the interest rate
rises,

70/r years.

If the interest rate is r percent, then the rule of 70 says that your savings will double
about every

bond

certificate of indebtedness.

dividends

Profits paid out to stockholders

public saving

In a closed economy, what does (T - G) represent?

private saving

In a closed economy, what does (Y - T - C) represent?

1500 and -500

Suppose that in a closed economy GDP is equal to 11,000, Taxes are equal to 2,500,
Consumption equals 7,000, and Government purchases equal 3,000. What are private
saving and public saving?

nominal interest rate

interest rate as usually reported by banks.

budget surplus

reduces the interest rate and raises investment

their labor earnings.

To maintain their standard of living, most people rely on

cyclical unemployment

The deviation of unemployment from its natural rate is called

does not go away on its own even in the long run.

The designation "natural" implies that the natural rate of unemployment

number of people employed plus the number of people unemployed.

The labor force equals the

the labor force that is unemployed.

The Bureau of Labor Statistics defines the unemployment rate as the percentage of

total adult population that is in the labor force.

The labor-force participation rate measures the percentage of the

You list prices for goods in dollars.

best illustrates the unit of account function of money

he amount of reserves banks must hold against deposits

Reserve requirements are regulations concerning

You pay for your double latte using currency.

best illustrates the medium of exchange function of money

Commodity money

what kind of money is backed by gold

fiat money

money with no intrinsic value

conducting open market operations.

The Fed’s primary tool to change the money supply is

10%

Assets Liabilities
Reserves 15,000 Deposits 150,000
Loans 135,000

6. Refer to the table. If the bank has lent out all the money it can given its deposits, then
what is its reserve ratio?

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